Argentina has announced a two-fold devaluation of the peso

The Argentine authorities decided to devalue the official exchange rate of the national currency of the peso more than twice, setting a new rate of 800 pesos per dollar. 

Before the devaluation, about 365 pesos were given for $1 at the official exchange rate. Argentina's economy minister, Luis Caputo, announced the devaluation in a televised address.

It is important to note that there are currency restrictions in Argentina, and different exchange rates are set for different categories of users, which leads to large differences between them. Ordinary citizens exchange pesos for dollars at the black (Blue) exchange rate, where about 1070 pesos are given for a dollar. On p2p platforms, the dollar exchange rate already exceeds 1,150 pesos.

Caputo noted that devaluation will be painful in the short term, but it is necessary to solve the problem of budget deficits and combat triple inflation exceeding 100%.

The main purpose of this measure is to avoid an economic catastrophe and restore stability in the country. The Minister also stressed that Argentina's budget deficit is 5.5% of GDP. Argentina has had a budget deficit for 113 of the last 123 years, and this has caused its economic problems.

The situation in Argentina is also complicated by high inflation of 143%, massive poverty, budget and trade deficits, as well as debt to the International Monetary Fund (IMF) in the amount of $45 billion.